SINGAPORE – Asia-Pacific stocks traded higher on Monday as data showed growth in Chinese manufacturing activity slowed in February.
In Japan, the Nikkei 225 rose 2.36% in morning trading as the index tried to rebound from its plunge of nearly 4% on Friday. The Topix index gained 1.7%.
Mainland Chinese stocks were higher as the Shanghai composite rose 0.89%, while the Shenzhen component rose 2.03%. Hong Kong’s Hang Seng index rose 1.44%.
Shares in Australia were up slightly as the S & P / ASX 200 gained 1.44%.
MSCI’s widest index of Asia-Pacific stocks outside Japan was up 0.98%.
South Korea’s markets are closed on Mondays due to a public holiday.
China manufacturing PMI
China’s official purchasing managers index (PMI) for manufacturing in February came in at 50.6 this weekend, according to data released by the country’s National Bureau of Statistics.
That was below the January reading of 51.3, but still above the 50 level that separates expansion from contraction.
A private poll released Monday also showed that China’s manufacturing activity grew at a slower pace in February.
The Caixin / Markit Manufacturing Purchasing Managers’ Index (PMI) came in at 50.9, down from its January reading of 51.5.
Levels above 50 in PMI values represent expansion, while those below mean contraction. PMI measurements are sequential and show expansion or contraction on a monthly basis.
Bond yields are falling
The moves in the Asia-Pacific markets came as bond yields fell.
The yield on the benchmark 10-year Treasury bill fell to just 1.383%, last traded at 1.4169%. Prices move inversely with revenues.
In Asia Pacific, the yield on the Australian 10-year bond fell to 1.652%, from more than 1.8% last week. The yield of the 10-year Japanese government bond also fell to 0.155%.
Oil prices are rising
Oil prices were higher in the morning of trading hours in Asia, with the international benchmark for Brent crude oil futures rising 1.92% to $ 65.66 a barrel. US crude oil futures rose 1.9% to $ 62.67 a barrel.
The US dollar index, which tracks the greenback against a basket of its peers, was at 90,812 after recovering from levels below 90 in late February.
The Japanese yen was trading at 106.60 a dollar, weaker than levels below 105.6 versus last week’s greenback. The Australian dollar changed hands at $ 0.7752 after falling from levels above $ 0.792 last week.
Subscribe to CNBC PRO for exclusive insights and analysis, and live programming of working days from around the world.